The IRS form 1099-K is issued for all programs that process more than $20K and 200 ONLINE transactions in the given tax year. This form reports the total gross volume of online payment transactions made through brightwheel. Brightwheel will mail a 1099-K for each program that meets these requirements by January 31st. These requirements may vary by state, see below for state specifics.

This includes entities that are non-profit/tax exempt etc since brightwheel is legally obligated to issue these forms to all eligible US-based users regardless of their business type. We recommend consulting a tax advisor to learn more about this form and how you should use it.

Please Note: For those not eligible to receive a 1099-K for or for those needing a breakdown of revenue or transactions, the Billing Transactions Report is the best place to find information on revenue, transactions, and processing fees.

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FAQs

Can Providers Access their 1099-K online?

No. 1099-K forms are not accessible online. They will be mailed out in January to the address on file within the customer's school settings in brightwheel. If any of this information needs to be updated, review the Changing Tax Details article for specific steps that must be completed prior to December 15th.

Providers can request a digital 1099-K copy if they have not received their paper copy in the mail after January 31st.

Do Multi Sites receive 1 or several 1099-K’s?

1099 forms will be sent to each location separately. Brightwheel does not issue one form for an entire organization.

What is Stripe?

Stripe is the payment processor brightwheel utilizes to offer online payments.

What about parents?

Parents can pull their own tax reports from within their profiles.


State-Specific Requirements

There may be state requirements other than the Federal IRS that require the issuers of 1099-K (brightwheel) to report to the state. Some of the states that have a lower 1099-K reporting threshold include: Arkansas, D.C., Florida, Illinois, Maryland, Massachusetts, Mississippi, Missouri, New Jersey, Pennsylvania, Vermont, Virginia and Maryland.

  • Arkansas - Lowers the dollar amount to $2,500 and eliminates the transaction count minimum.

  • Florida - 1099-K returns will be due by the 30th day following the IRS due date and are required from payment settlement entities operating in Florida or with an address in Florida. Formerly a no-income tax state where there was no state 1099-K reporting, Florida recently changed the law to require the 1099-K to be reported directly at the federal thresholds.

  • Illinois - brightwheel is required to submit the reports to Illinois electronically when four or more separate transactions that exceed $1,000 are reported.

  • Massachusetts, Mississippi, Maryland, Vermont - Lowers the dollar amount to $600 or more in reportable payments.

  • Missouri - Lowers the dollar amount to $1,200 or more in reportable payments.

  • New Jersey - Lowers the dollar amount to $1,000 or more in reportable payments and eliminates the transaction count minimum.

  • Virginia - Lowers the dollar amount to $600 or more in reportable payments.


1099-K Discrepancies

Our platform will have monthly reporting differences depending on how you look at the payments. On your platform, you will see the transactions on a 'created' basis, meaning as soon as a parent/customer pays, it will show up as a transaction. However, from a reporting perspective, it will be recorded on an 'available' basis, meaning it has passed through any approval/authorization before you can fully withdraw it or have it as part of your available payout balance. It is very similar to when you charge something on your personal credit card, it will show up in your credit card statement immediately as pending (created) but not posted to your statement account balance (available) until 2-3 business days later.

EX: Parents paid 12/29/2021 but did not post until 1/2/2022


Please Note: This publication is designed to provide general information regarding the subject matter covered. It is not intended to serve as legal, tax, or other financial advice related to individual situations. Because each individual's legal, tax, and financial situation is different, specific advice should be tailored to the particular circumstances. For this reason, you are advised to consult with your own attorney, CPA, and/or other advisors regarding your specific situation.

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